The takeover of Alliance Forest Products by United States-based Bowater Inc. resulted in job loss for members of the Canadian board of directors and head office staff as well as loss of corporation shares from the Toronto Stock Exchange. Bowater's strategy to reduce costs and enhance productivity may result in additional Canadian job losses in the future. Corporations in the forest products industry are merging or acquiring companies to stay competitive. These mergers are a public policy concern for both Canada and the United States. The frequency and the size of the mergers raise concerns whether antitrust and competition policies should be used to restrain the price increases that the consolidation might entail.
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